The extra security was a floating charge. You are right about the 6 month issue with Allco (or so I am led to believe).
The only difference with Centro is that the floating charge is worthless unless Centro run the show. If the banks are handed all the keys to some 700 shopping centres they would have the right under the floating charge to continue to run the business......but as if they could.
Think about administration/liquidation right before CHristmas! They hand over control and management and effectively resign from their posts. All the Centro staff will run like hell. WHose going to administer the contractors, cleaners etc. etc.
The shopping centres would fall into disrepair very quickly. It's a disaster, and I would(n't) love to see it happen just for kicks.
CNP Price at posting:
8.7¢ Sentiment: None Disclosure: Held
